Investing.com - The Australian dollar was lower against the U.S. dollar on Monday, after Australia’s government said it will cut spending to help produce a budget surplus this fiscal year, fuelling speculation over a rate cut by the country’s central bank next month.
AUD/USD hit 1.0302 during European morning trade, the pair’s lowest since October 17; the pair subsequently consolidated at 1.0308, shedding 0.22%.
The pair was likely to find support at 1.0242, the low of October 16 and resistance at 1.0381, Friday’s high.
Earlier Monday, Australian Treasurer Wayne Swan said the government remained on track to produce a budget surplus in the current fiscal year and added that planned spending cuts meant the Reserve Bank of Australia had increased scope to cut interest rates.
Market participants were looking ahead to Australian inflation data later in the week, amid concerns that weak numbers could increase the likelihood for an interest rate cut.
Overall market sentiment remained supported after weekend regional election results in Spain indicated support for government austerity policies, removing a possible obstacle to formally requesting a bailout.
The Aussie was lower against its New Zealand counterpart, with AUD/NZD down 0.36% to 1.2616 but was higher against the weaker yen, with AUD/JPY up 0.23% to 82.12.
The yen remained under pressure amid expectations that the Bank of Japan may further increase the size of its asset purchase program at its upcoming policy meeting on October 30.
AUD/USD hit 1.0302 during European morning trade, the pair’s lowest since October 17; the pair subsequently consolidated at 1.0308, shedding 0.22%.
The pair was likely to find support at 1.0242, the low of October 16 and resistance at 1.0381, Friday’s high.
Earlier Monday, Australian Treasurer Wayne Swan said the government remained on track to produce a budget surplus in the current fiscal year and added that planned spending cuts meant the Reserve Bank of Australia had increased scope to cut interest rates.
Market participants were looking ahead to Australian inflation data later in the week, amid concerns that weak numbers could increase the likelihood for an interest rate cut.
Overall market sentiment remained supported after weekend regional election results in Spain indicated support for government austerity policies, removing a possible obstacle to formally requesting a bailout.
The Aussie was lower against its New Zealand counterpart, with AUD/NZD down 0.36% to 1.2616 but was higher against the weaker yen, with AUD/JPY up 0.23% to 82.12.
The yen remained under pressure amid expectations that the Bank of Japan may further increase the size of its asset purchase program at its upcoming policy meeting on October 30.